Through Tuesday, March 9, only businesses with fewer than 20 employees can apply for first and second draw Paycheck Protection Program (PPP) loans. The priority window is an effort to more equitably target small businesses in need of relief and comes as part of a number of changes the Biden Administration announced last week before PPP expires on March 31.
There have been many favorable changes to PPP over the last few months, as business expenses paid for with PPP funds are now tax deductible, and borrowers are no longer penalized for receiving an Economic Injury Disaster Loan grant. Bookstores are eligible for a second draw PPP loan if they 1) employ 300 or fewer employees, 2) have fully exhausted their first PPP loan, and 3) demonstrate at least a 25 percent reduction in gross receipts in any quarter in 2020 compared to the same quarter in 2019.
Eligible bookstores are encouraged to apply for either their first or second draw PPP loan before the 14-day window closes on Tuesday, March 9, at 5:00 pm ET. Bookstores can find a participating PPP lender through the SBA Lender Match tool.
If you have questions about PPP, consider registering for one of the following webinars from the Small Business Administration and Public Private Strategies:
- March 4, 3:00 p.m. ET: Asian-American + Pacific Islander, Native American + Tribal Small Business Owners
- March 5, 1:00 p.m. ET: Black + African-American Small Business Owners
- March 5, 3:00 p.m. ET: Hispanic Small Business Owners
- March 6, 2:00 p.m. ET: Veterans, Self-Employed Business Owners
- March 8, 3:00 p.m. ET: LGTBQ Business Owners, Youth Entrepreneurs, Restaurant Owners
Regardless of whether your bookstore is eligible for this 14-day period to apply for PPP, booksellers are encouraged to explore other relief options they may be eligible for, including the Employee Retention Tax Credit (ERTC) which provides a refundable tax credit for certain wages paid to employees through June 30, 2021. The 2020 year-end relief bill extended and expanded the ERTC to, among other things, allow businesses that received PPP to qualify. To learn more, see ABA’s FAQ about the ERTC here.